Updated June 19, 2019

Study: Average Cost of Health Insurance

Health insurance premiums continue to skyrocket. This report shows you the true cost of health insurance and how it will affect your pocketbook.

What Does Health Insurance Cost?

The average person pays $464 for individual coverage and $1,266 for family coverage.

The average single person has an annual deductible of $2,903 and families have an average deductible of $5,739. This takes into consideration both group and marketplace plans.

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What is the average healthcare cost per person?

The average healthcare cost per person is $10,345. This is a 4.8% annual increase. This doesn't mean every person spends this much, though. More than half of spending on insurance was for the gravely ill and elderly. In fact, half of our population had little to no medical care costs last year.

However, experts predict an average 5.8% annual increase over the next 10 years. The aging population is largely to blame for the increase. But rising medical prices play a role too.

What is the average cost of health insurance on an HMO?

A single person on an employer-sponsored plan pays an average of $548 in monthly insurance premiums. This means a family pays an average of $1,498 per month for an HMO plan. Singles pay $6,576 per year and families pay $17,978.

What is the average cost of health insurance on a PPO?

PPO plans often cost a little more. Singles pay around 3.4% more for a PPO. Families pay around 5.7% more. Singles pay an average of $567 per month for insurance premiums. Families pay an average of $1,584 per month for insurance premiums.

Average health insurance cost for a single male

On the exchange market, the average male spends $310 per month on health insurance. Men also have an average annual deductible of $4,457.

Average health insurance cost for a single female

On the exchange market, the average female spends 7% more than a single male. Insurance premiums for a female average $332 per month. However, women often have plans with 4% lower deductibles than men have.

Average health insurance cost for a married couple

Married couples pay an average of $717 in annual premiums. They also have an average deductible of $8,113. A 4-person family pays around 40% more than a married couple. They average monthly mortgage insurance premiums of $1,004.

What does health insurance cost on the exchange?

The average individual policy on the exchange costs $393 per month. The average family policy costs $1,021 per month. Looking back over the past 5 years, individual policies increased 106%. Family policies increased 147%.

Consumers have the choice of many plans, each with a different premium. Catastrophic, bronze, silver, gold, and platinum are the choices. Catastrophic plans offer the lowest premiums. Platinum plans are the top of the tier (and with the highest costs). The lower the premium, the higher the annual deductible, though. This means more cash out of your own pocket.

What are the premiums for the different exchange tiers?

The exchange tiers vary quite a bit in their premiums. For example, the average catastrophic premium and platinum premium differ by 225%. The most commonly chosen plan is the Bronze plan. This plan had an average premium of $315. This is a difference of 105%.

Average annual deductible on the exchange

Individuals have an average deductible of $4,328. Families have an average deductible of $8,352. Looking at the past 5 years, individual deductibles increased 40.5%. Family deductibles also increased an estimated 105%.

What are the average premiums by age group?

People aged 55-64 pay the highest premiums by far. Their premiums exceed consumers aged 18-24 by 227%. Luckily, the increase is gradual. Consumers in the 25-34 age range pay only 35% more than those in the 18-24 bracket. When you jump from the 45-54 age bracket to the 55-64 bracket, you see the largest increase of 45%.

Average premium tax credits for marketplace insurance

The average premium tax credit for the United States is $371 per month. Alaska had the highest premium tax credit at $976. New York had the lowest average tax credit at $230. The government makes these payments on your behalf. It's to help make your insurance premiums more affordable. The credits are based on your total household income. The credits operate on a sliding scale.

Health insurance cost for employer-sponsored plans

Individuals pay an average of $536 per month on an employer-sponsored plan. The average family pays $1,512 per month on an employer-sponsored plan. Individuals pay an average of 36% more on an employer-sponsored plan than on the exchange. Families pay an average of 48% more with employer insurance.

How much is the penalty for not having health insurance?

The penalty for not carrying health insurance is the individual shared responsibility payment. You pay the fee for every month you and your dependents don't have insurance. You pay the fee when you file your taxes. The maximum amount you pay is the higher of either of:

  • 2.5% of your total household income but no more than the total premium for a Bronze plan under the Affordable Care Act (also known as Obamacare)
  • $695 per adult in your home and $347.50 per child with a maximum of $2,085 per household

Bottom Line

Health insurance is expensive, yet it's mandatory. You have the option to choose between marketplace plans and employer-based plans. Even if you have an employer-based plan, you can opt for the marketplace option. Keep in mind, though, you can't take advantage of the premium tax credit if you have an employer-paid option.

If history speaks for itself, expect rising insurance and healthcare costs over the next decade. Protecting yourself and your family with the right insurance can help you stay financially stable. No one can predict when they'll need health insurance. When you need it, though, you'll be glad it's there.

Sources and References:


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